Paraguayan Senate has opened impeachment proceedings against President Santiago Peña following the Central Bank's seizure of Ueno Bank, an action that left an estimated three million people unable to withdraw or use their money and triggered widespread street demonstrations.
Key facts
- The Central Bank intervened on Tuesday, freezing Ueno Bank's accounts over concerns about its financial stability.
- Thousands protested across the country demanding accountability from Peña, who owned a stake in the group that controlled the bank until last year.
- Members of Peña's Colorado Party withdrew support on Thursday and voted to start impeachment.
- Peña asked for a three‑day adjournment to prepare his defence, but the Senate rejected the request and continued the trial.
- The Attorney General’s Office has opened an investigation into Peña’s alleged involvement in the bank’s supervision and the placement of public funds.
What led to the Senate's action?
The crisis began when the Central Bank of Paraguay placed Ueno Bank under its control and immobilised its accounts, citing doubts about the institution’s solvency. The move instantly cut off access for millions of depositors, many of whom belong to low‑income communities that relied on the bank for everyday transactions.
Why is the president under fire?
Peña, 47, previously held an ownership interest in the conglomerate that owned Ueno Bank. Opposition lawmakers argue that this connection represents a conflict of interest, especially as the bank had expanded to manage government pension payments and accounts of several state‑owned enterprises. Opposition senator Raúl Benítez went further, accusing Peña of orchestrating a “criminal scheme,” a charge the president has denied.
How has the president responded?
In a televised address, Peña apologised to the nation, saying, “I want to apologise to the people if at any point I failed. It was never my intention to betray the trust you placed in me.” He also requested a brief pause in the Senate’s deliberations to organise his defence, a request that was ultimately rejected.
What role is the Attorney General playing?
The Attorney General’s Office of Paraguay confirmed it is probing Peña for possible misconduct linked to the supervision and resolution of Ueno Bank, as well as the allocation of public funds to the institution. The investigation focuses on “acts related to the supervision and resolution of Ueno Bank S.A. and the placement of public funds in said entity.”
International reaction
The United States Embassy in Paraguay issued a statement expressing solidarity with the Paraguayan people amid the turmoil, while refraining from commenting on the impeachment process or Peña’s political future.
The Senate, acting as the Senate of Paraguay, continues its deliberations, which could strip Peña of the immunity traditionally granted to former heads of state if he is removed from office.